Nominal Growth Rate..

CFA Level III
#1

So knowing nominal vs real is going to be key on the exam…

We know, Nominal Growth Rate = Real Growth Rate + Inflation

So this does mean… Real Growth Rate = Nominal Growth Rate - Inflation

Inflation = Nominal Growth Rate - Real Growth Rate.

Seems so easy, but for some reason this does mess me up sometimes.

#2

Yes

#3

Yes².

Although they really should be compounded.

[_ Stop that! _]

#4

Yes - geometrically linked